Trinity Industries, Inc.’s (TRN - Free Report) wholly-owned subsidiary — TrinityRail Maintenance Services, Inc — has announced the development of a new railcar maintenance services facility in Shell Rock, IA. The chosen location will allow Trinity access to Class I railroad network as well as the upper Midwest.
The new facility, expected to begin operations by 2020-end, will offer services like repairs and maintenance, coatings, cleaning, inspections as well as testing. Besides enhancing customer experience, the railcar service facility will expand the company’s internal network and operational flexibility.
The expansion initiative marks the company’s progress toward its goal of internally servicing nearly half of its fleet, which comprises 123,000 owned and managed railcars. Trinity also aims to improve business returns through this endeavor. Benefits from the full-service facility is expected to be accretive to financial results by 2021-end.
Trinity has a planned capital expenditure of $60 million set for the construction of the facility. Nearly half of this investment is scheduled in the current year. The company’s capex projection for 2019 is exclusive of this investment.
Zacks Rank & Other Key Picks
Trinity carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Transportation sector are SkyWest, Inc. (SKYW - Free Report) , GATX Corp. (GATX - Free Report) and Fly Leasing Limited (FLY - Free Report) . While SkyWest and Fly Leasing sport a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest and GATX have gained more than 32% and 7% respectively so far this year. Meanwhile, Fly Leasing has an impressive earnings surprise history, outperforming the Zacks Consensus Estimate in each of the trailing four quarters. The company registered an average of 41.3%.
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